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Impact Of Globalization On Labor Movement

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The Effect of Globalization on Labor Movement Introduction Today, globalization is a phenomenon which affects all aspects of our life. In a broad sense, globalization is the process or processes that increase the movement of people, culture, technology, ideologies and information across the world. Economists describe the term to refer to international integration in commodity, capital and labor markets. If we look at the integration in these markets as the benchmark, it is clear that globalization is not a new phenomenon. The aim of this paper is explaining the impact of globalization on specific area, international labor movement which is a type of the migration. There are different factors for labor movement but that is true that thanks to …show more content…

Rich and industrialized countries are magnets for labor migration, with development of globalization it is becoming more easily to access for working in these countries. The local conditions for workers in their countries are also important. Because as causes of labor movements there are push and pull factors. Push factors are about origin country, such as overpopulation, few jobs, low wages, political problems. Pull factors are about destination country, such as more and better jobs, higher wages, “better life.” Globalization also means moving internationally more easily which is accelerate factors for labor migration. Globalization has increased the pressure and the opportunities for people to move between countries. Specifically the role of economic globalization is great. Economic globalization refers to the increasing interdependence of world economies as a result of the growing scale of cross-border trade of commodities and services, flow of international capital and wide and rapid spread of technologies. Every country is faced with the process of economic globalization. 2. Three waves of globalization and labor movement in these …show more content…

The International Organization for Migration confirms that “remittances to developing countries represent a large proportion of world financial flows and amount to substantially more than global official development assistance, more than capital market flows and more than half of foreign direct investment flows to these countries”. The United Nations Population Fund Annual Report indicates that remittances substantially augment GDPs for countries such as Albania, El Salvador, Eritrea, Lebanon, Jordan, Nicaragua, and Yemen. These remittances represent 138.2% of official development assistance. Skills and Experiences When workers return to their countries of origin with industrial skills and experiences, it is useful for technical knowledge in the labor-sending countries. Supporters of liberal capitalism view such migration as a normal part of the economy, where skilled labor gravitates to places and opportunities, benefiting both sending and receiving countries. Others however, including some international organizations and many labor exporting countries, view the concept of the brain-drain as a liability, where the exodus of educated people represents wasted human resources for the sending countries and is a part of the ongoing pillage of poor countries by rich, industrialized, and colonialist driven nations.

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Labor sectors estimate the number of job seekers entering the labor market annually at around 700,000 and 800,000, which is considered a huge number compared to the production capacity of the Egyptian economy (Ghoneim, Ahmed). In addition, there is a great conflict between availability of skills and labor market requirements. The lack of qualified human capital implies that there is a mismatch between the outputs of the education system and the demands of the labor market, which results in high rates of unemployment reaching about 12% (Ghoneim, Ahmed). Hence, migration to other countries is regarded as an outlet for those unemployed. Egyptian migrants usually send back home remittances that represent one of the largest financial inflows to the country.

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